Home Loan: On June 5, 2024, the Reserve Bank of India (RBI) Monetary Policy Committee (MPC) initiated its session. Subsequently, RBI Governor Shaktikanta Das disclosed the resolutions made during the meeting.
No change in repo rate
Shaktikanta Das stated that once again, the members present at the meeting have decided to maintain the repo rate. This implies that the repo rate will remain steady at 6.5 percent. The RBI’s MPC has resolved to keep the repo rate unchanged at 6.5 percent with a majority decision of 4:2. The approach of ‘taking back the importance’ was adopted in this meeting as well.
What are the new rates
The stability in the repo rate has led to the maintenance of other rates. RBI has kept the reverse repo rate steady at 3.35 percent, the standing deposit facility rate at 6.25 percent, the marginal standing facility rate at 6.75 percent, and the bank rate at 6.75 percent.
inflation rate
The commitment of the RBI to maintain inflation at a steady rate of 4 percent was reiterated by Governor Das. Concerns were raised by the RBI regarding the escalation of food inflation. Following the meeting of the Monetary Policy Committee, Governor Das of the RBI noted the balanced advancement of inflationary trends.
The expectation arises from the general southwest monsoon to boost kharif production and elevate water reserves in reservoirs. Such developments could potentially ease inflationary pressures.
RBI forecasts suggest that the retail inflation rate will persist at 4.9 percent in the initial quarter of the fiscal year 2025, followed by 3.8 percent in the second quarter, 4.6 percent in the third quarter, and 4.5 percent in the fourth quarter.
Should the monsoon follow its usual pattern, there is a likelihood of inflation staying at 4.5 percent in the current financial year. The RBI Governor indicated the possibility of witnessing some improvements in retail inflation rates during the second quarter of the current fiscal year.
